14.4.15

Retail inflation @ 5.17%


Retail inflation eased to a three-month low in March on the back of some moderation in food prices, triggering expectation of a cut in interest rates. Inflation measured by the consumer price index rose 5.17%, slower than he previous month's 5.37%.
In the rural area, the retail inflation rate was 5.58%, while in the urban area it stood at 4.75%.
Retail inflation remains below RBI's comfort level and may prompt the central bank to resume its rate-cut cycle after a pause in the monetary policy review in April. But, some economists say the RBI may prefer to wait for more data before it is convinced about the easing of inflationary pressures.
The impact of unseasonal rains on crops is still being assessed and it could put some pressure on food inflation.

No comments: